Last Update: April 19, 2023, 07:30 AM IST
To enjoy retirement, you must first ensure that a steady source of income is maintained
To enjoy retirement, you must first ensure that you have a steady source of income even after you quit
The period after retirement is often referred to as the golden years of an individual. It is a time to relax, spend quality time with your grandchildren, and indulge in a hobby. To enjoy retirement, you must first ensure that you have a steady source of income even after you quit. Here investing in some schemes can be a great option as it can provide you regular pension and help you to meet various expenses.
Here is a list of five schemes in which you can invest to get a steady income after retirement.
Atal Pension Yojana (APY)
Atal Pension Yojana is a government social security scheme that provides a steady income after retirement. Anyone between the age group of 18 to 40 years with a bank account can subscribe to this scheme. Subscribers have the option of receiving a minimum monthly pension of Rs 1,000, Rs 2,000, Rs 3,000, Rs 4,000 or Rs 5,000. Pension is paid at the age of 60 years.
Senior Citizen Savings Scheme
This is another government scheme for senior citizens in which you need to deposit a minimum of Rs 1,000 and a maximum of Rs 30 lakh to get regular income and tax benefits. The account can be opened by any individual of the age of 60 years or more or jointly with the spouse. For retired personnel of Defense Services, they can open the account on attaining the age of 55 years. By making deposits in SCSS account, you can claim income tax deduction under section 80C of the Income Tax Act. Interest is payable on quarterly basis in this scheme.
Unit Linked Insurance Plan (ULIP)
Unit linked insurance plans provide the benefits of both insurance and investment. Hence, it is an ideal post-retirement plan for many. Here, the policyholder pays a fixed amount as premium for life insurance coverage, while the remaining amount is invested in debt funds, equity bunds or balanced funds.
Post Office Monthly Income Scheme (POMIS)
POMIS account can be opened by depositing a minimum of Rs 1,000 and a maximum of Rs 9 lakh. A maximum of Rs 15 lakh can be deposited for joint accounts. The maturity period of POMIS is five years from the date of account opening. Interest is paid monthly at the rate of 7.4% per annum.
National Pension Scheme
This plan can also provide regular income after retirement. Each subscriber of this scheme is given a unique Permanent Retirement Account Number (PRAN). You can open two types of accounts under this scheme, namely Tier 1 and Tier 2. You need to make a minimum contribution of Rs 500 in Tier 1 account and Rs 1,000 on opening Tier 2 account. You can claim deduction u/s 80CCD of the Income Tax Act in Tier 1 for the contribution made in Tier 1 account but no such benefit is available in Tier 2 account.
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